Should I move closer to work?

Should You Pay More to Live Closer to Work?

The commute-versus-rent tradeoff is one of the biggest financial and lifestyle decisions you’ll make. Here’s how to think through it properly.

The True Cost of Your Commute

Most people drastically underestimate commute costs. Here’s the full picture:

Direct Vehicle Costs (per mile driven):

• Gas: $0.15-0.25/mile
• Maintenance: $0.08-0.12/mile
• Depreciation: $0.15-0.30/mile
• Insurance (wear): $0.02-0.05/mile
• Total: $0.40-0.72/mile

The IRS mileage rate ($0.67/mile in 2024) is a reasonable estimate.

Example: 25-mile commute each way

• Daily miles: 50
• Monthly miles: 1,000 (20 work days)
• Monthly vehicle cost: $500-670
• Annual vehicle cost: $6,000-8,000

Plus Time Cost:

• 45 minutes each way = 1.5 hours/day
• Monthly hours: 30+
• At $50/hour value: $1,500/month
• Annual time cost: $18,000

Plus Hidden Costs:

• Parking: $100-500/month
• Tolls: $50-200/month
• Additional meals (no time to cook): $100-200/month

The Full Comparison

Current Situation (long commute):

• Rent: $1,800/month
• Vehicle costs: $600/month
• Parking: $150/month
• Time (1.5 hrs/day × $50): $1,500/month
• Total: $4,050/month

Closer to Work:

• Rent: $2,400/month (+$600)
• Vehicle costs: $200/month
• Parking: $0
• Time (30 min/day × $50): $500/month
• Total: $3,100/month

Net savings from moving closer: $950/month

Moving to the more expensive apartment actually saves money.

The Time Value Question

How you value commute time matters enormously:

Lower time value ($25/hour):

• 60 minutes saved daily = $500/month value
• May not justify large rent increase

Medium time value ($50/hour):

• 60 minutes saved daily = $1,000/month value
• Often justifies $500+ rent increase

High time value ($100/hour):

• 60 minutes saved daily = $2,000/month value
• Justifies significant rent premium

Your actual time value depends on:

• Could you work more (and earn) with extra time?
• Would you do something productive or valuable?
• How much does commuting stress affect you?
• What’s your general hourly compensation?

Beyond the Numbers

Health impacts of long commutes:

• Higher rates of obesity (less time to exercise)
• Increased stress and cortisol levels
• Worse sleep quality
• Higher blood pressure
• Greater relationship strain

Quality of life improvements:

• More time for exercise, cooking, relationships
• Less rushed mornings
• Ability to go home for lunch
• No weather-related commute anxiety
• Energy preserved for evening activities

Career impacts:

• Available for early/late meetings
• Less worn out at work
• Can stay for networking events
• Spontaneous opportunities accessible

When Moving Closer Makes Sense

Your commute is 45+ minutes each way: Long commutes have exponentially higher quality-of-life costs.

You’re in the office 4-5 days/week: Full-time in-office makes proximity much more valuable.

The rent difference is under 30% more: If closer housing costs 30%+ more, the math gets harder.

You’d use the time well: If extra time means working, exercising, or family time (not just TV), the value is real.

Your commute is stressful: Traffic jams, transit delays, and bad weather create stress beyond time loss.

When Staying Farther Makes Sense

You’re mostly remote: 1-2 days in office means commute costs are 60-80% lower.

The rent difference is extreme: In some cities, downtown costs 50-100% more than suburbs. That’s hard to justify.

Your commute is pleasant: Train time can be productive (reading, working). Some people enjoy the mental transition.

You have non-work location needs: Kids’ schools, partner’s job, aging parents, or community ties may anchor you.

You need more space: Closer to work often means smaller spaces. Families may need suburban square footage.

The Hybrid Work Calculation

3 days in office:

• Original commute cost: $1,800/month
• At 60% (3 days): $1,080/month
• Savings from moving closer: proportionally less
• May not justify higher rent

5 days in office:

• Full commute costs apply
• Full time savings from moving
• Often justifies significant rent premium

Optimizing for Both

Live on transit: Being near a train line can provide short commute without downtown rent.

Consider biking distance: Under 5 miles makes biking viable, eliminating car costs entirely.

Look at less obvious neighborhoods: Adjacent-to-downtown neighborhoods often have much lower rent with short commutes.

Negotiate remote days: Even one additional remote day changes the math significantly.

Making Your Decision

Move closer if:

• You’re in office 4+ days weekly
• Commute savings (including time) exceed rent increase
• Your commute is stressful or unproductive
• Health and quality of life are suffering
• You’d genuinely use extra time well

Stay farther if:

• You’re mostly remote (1-2 days/week)
• Rent difference is over 40%
• Your commute is productive or enjoyable
• You need space that’s only affordable farther out
• Non-work factors anchor you to your location

The Right Question

Instead of “can I afford higher rent closer to work?” ask: “Can I afford to keep losing [X] hours per week to commuting?”

Time is the one resource you can’t make more of. Spending 500+ hours per year in a car may not be the best use of your limited time on earth—even if the rent is cheaper.